Due to a lack of electricity, cryptocurrency miners are fleeing Kazakhstan.
According to the co-founder of a crypto mining firm called Xive, some crypto miners are moving out of Kazakhstan and transferring to countries like Russia and the United States due to the Asian country’s electricity shortage.
Xive has announced that it will be leaving southern Kazakhstan, but it is unclear whether the company will relocate elsewhere in the country.
Kazakhstan is the world’s second-largest cryptocurrency mining country, after the United States.
It has generally welcomed crypto miners into the country, particularly those who emigrated from China after crypto became illegal there.
Crypto mining, on the other hand, has been blamed for Kazakhstan’s energy shortages, which has contributed to a surge in power demand in the Asian country.
Kazakhstan is losing its cryptocurrency mining industry.
According to the co-founder of a crypto mining company called Xive, crypto miners are leaving Kazakhstan due to the country’s electricity shortage problems.
According to a Fortune report, Didar Bekbau announced that his crypto mining company is leaving southern Kazakhstan in a tweet on his personal Twitter account.
He said in the tweet, “Country risk played out.”
Whether Xive will relocate to a different part of Kazakhstan or to a different country entirely has not been confirmed as of press time.
Our mining farm in south KZ is being shut down, which is a little sad. The last container is ready to be sent.
So much work has been done, and people’s hopes have been dashed.
Pic.twitter.comJ8ZMg6GeUI The country risk has been realized pic.twitter.comJ8ZMg6GeUI
24 November 2021 — Didar (@didar_bekbau)
According to the Fortune article, Bekbau cited electricity shortages and “a national grid that makes it difficult to transfer power from energy-rich areas in the north to more energy-scarce regions in the south” as reasons why that region of the country is no longer suitable for crypto mining.
Bekbau also claims that some crypto mining companies in Asia are relocating to Russia and the United States, where electricity is more reliable.
Crypto miners in Kazakhstan will pay higher electricity rates, according to Brinkwire News
Kazakhstan has crypto mining.
Kazakhstan is the world’s second-largest cryptocurrency mining country, according to a CoinDesk report.
The United States is the world’s largest crypto mining country.
Following China’s ban, many crypto miners arrived in the country.
News from Brinkwire in a nutshell.